Understanding Health Savings Accounts (HSAs) in Kentucky 

A health savings account (HSA) is a special savings account designed to help you set aside money on a pre-tax basis for qualified medical expenses. HSAs are paired with high-deductible health plans (HDHPs), allowing you to pay for things like doctor visits, prescriptions, and other eligible healthcare costs using tax-free funds.

Key Benefits of an HSA

• Tax savings: Contributions to your HSA are tax-deductible, and the money grows tax-free. Withdrawals for qualified medical expenses are also tax-free.
• Flexibility: Funds in your HSA roll over year to year, so you never lose what you don’t spend.
• Control: You decide how and when to use your HSA funds, giving you more control over your healthcare spending.
• Long-term planning: HSAs can be used as a savings tool for future healthcare needs, even into retirement.

Who Is Eligible for an HSA in Kentucky?

To open and contribute to an HSA, you must:

• Be enrolled in a qualified high-deductible health plan (HDHP)
• Not be covered by another non-HDHP health plan
• Not be enrolled in Medicare
• Not be claimed as a dependent on someone else’s tax return

How Our Team Can Help

At 314 Insurance Advisors, we guide Kentucky residents through the process of choosing and managing an HSA. Our team can help you:

• Determine if an HSA is right for your situation
• Understand contribution limits and eligible expenses
• Integrate your HSA with your overall healthcare and financial planning

Contact us today to discuss how an HSA can fit into your healthcare planning.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.